Dodd & Dodd Attorneys, PLLC

Dodd & Dodd Attorneys, PLLC Louisville Kentucky

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Student Loans and the Division of Debts in a Louisville Divorce

Student Loans and the Division of Debts in a Louisville Divorce

What happens with student loans and the division of debts in a Louisville divorce?  How are assets and debts characterized and divided during a divorce?

The division of marital property is a complex process in many Louisville divorce cases.  Generally speaking, property and debt acquired before the marriage is considered to be “separate” from the marital assets of the couple.  Anything acquired or debt created during the course of the marriage will probably be considered part of marital property.  Marital property (assets and debts) in a Kentucky divorce is to be equally divided between the parties in most cases.

As a general rule student loans and the division of debts in a Louisville divorce is all about how and when they were acquired.  If each of the parties obtained student loans and completed their education prior to the marriage the student loans will remain with the original debtor.  This gets a lot more complex when student loans are obtained during the course of the marriage.

Several questions must be considered by the Court if the debt occurred during the marriage.  Who was the benefactor of the student loan and what impact did it have on the generation of income?  What were the proceeds of the student loan used for?  In some cases a portion of the loan may be used for (mutually beneficial) room and board expenses.

In plain terms, how did the couple benefit and in what way did the couple bear the costs to date?

Kentucky law requires an “equitable distribution” of marital assets and debts.  If there is a substantial difference in income between the parties the Judge may assign less of the burden to the lower earning spouse.  Did each spouse co-sign the student loan?  If so each party may be considered to be equally responsible for the debt.  Each case is unique and driven by the specific facts associated with the situation.  This is why it is important to seek the advice of the experienced divorce and family law attorneys at Dodd & Dodd.

We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.